High school sports (plenty of towns put up flags or banners on their streetlights commemorating senior athletes), "generic" seasonal banners (this is definitely just "winter" and not Christmas, wink wink), some towns might put up flags for fairs or similar events on their streetlights. Generally things that might or might not technically count as flags, and aren't really not political but count as non-political to the people in charge of enforcing this proposal.
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Plenty of people have tried to make that argument. Those people typically wind up spending years of their life in prison once their delinquent taxes have built up enough (and losing the property that they were trying to avoid paying taxes on, also).
Anyone who tries to tell you that they've successfully argued in court that the law doesn't apply unless you sign a contract agreeing to it is either just plain lying or got lucky on a small enough case that the judge or prosecution just didn't want to deal with the headache.
By the way, keep in mind that property rights aren't a naturally existing phenomenon. You own your home because the state agrees that you are the rightful owner. Is a different system theoretically possible? Sure, probably, but the state-based enforcement of property ownership is the one that exists today.